The paper 'Aldi Company in Australia - Strategic Management and Strategic Competitiveness" is a good example of a management case study. Since opening its first store in the year 1913, Aldi Company has grown to become one of the most successful global food companies. The company is popular for its strategic marketing method of providing quality products are very low cost. The first store was opened in Germany in the year 1913 but the company has expanded to overseas market in different parts of the world. The major regions where it operates include most parts of Europe such as Netherland, Germany, France and Britain.
In addition, the company also operates in Australia where it takes a considerable market share in the region. This essay will discuss the approach the Aldi Company should employ to maintain its current level of growth and strategic competitiveness in light of challenges that the sector is facing in Australia. 2.0 Strategic Management and strategic competitiveness Strategic management is the implementation of the goals that are formulated by an organization’ s top management. The goals are both short time and long-time goals which are aimed at achieving success in the organization.
On the other hand, strategic competitiveness is the outcomes that are attained when an organization successfully implements a value-creating strategy giving it an advantage over its competitors (Brinkman 2010). It is the success of a strategic plan that gives a firm an advantage over the rest of the firms in the industry. A successful strategic plan is achieved when an organization understand the position of its competitors and act to spot gaps and opportunities. The characteristics of the competitive landscape affect Aldi Company either positively or in a negative way.
Such characteristics as innovation and differentiation have given firms strategic competitiveness over their competitors (Brinkman, 2010). The same has been happening to Aldi. Aldi has been using a cost leadership strategy to maintain its growth. This strategic has positively affected the Aldi performance in this competitive landscape (Brinkman, 2010). The focus on the price has seen the company provide products at a very low price hence attracting a lot of buyers. Differentiation is a major characteristic of the competitive market which Aldi has not paid much focus.
The company though has a strong brand does not completely differentiate its products (Brinkman 2010). The strategy has not been affecting the performance of the organization as most buyers are away from the Aldi products. Buyers are able to identify Aldi products mostly due to their low price (Brinkman, 2010). However, with the increase in the competition in the market and the threat of new entrant, the strategy is likely to affect the business negatively. Aldi has managed to low its price to get the competitive landscape due to a number of factors.
The competitors are offering their products at a relatively high price which Aldi feels that it can provide the same product at a relatively low price. By focusing on a few products, the company has managed to provide the products at price lower than the other firms which have given it a competitive advantage in the market. Economies of scale also play a vital role in enabling the company providing quality products at a low price. It buys good at relatively large quantities hence low cost per product (Brandes 2012).
This strategy of low price focus has seen the company maintain its growth and strategic competitiveness in the market.
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